Loto-Québec Results Match Last Years

17 Jun 2004

MONTREAL, Quebec – (PRESS RELEASE) -- For the fiscal year ended March 31, 2004, Loto-Québec posted consolidated revenues of $3.761 billion, up 0.3% from the previous year, and net income of $1.465 billion, representing an increase of 1.3% compared to fiscal 2002-2003. For their part, operating expenses were down by 1.2%.

These results are outlined in Loto-Québec's 2004 Annual Report entitled, Committed to Maintaining a Healthy Balance, and tabled by Québec Finance Minister, Mr. Yves Séguin, at the National Assembly today. The document also indicates that the Corporation contributed a total of $1.493 billion in dividends to the Government during the past fiscal year, an increase of $182 million over the previous year. A portion of this increase originates from a levy of $100 million on shareholder's equity.

A Market That Has Reached Maturity

"We are pleased to have ended the past fiscal year with our consolidated results up," underlined Mr. Alain Cousineau, President and Chief Executive Officer of Loto-Québec. "All indications, however, point to the fact that we have now entered into an era of more moderate growth. Within this context, maintaining the level of our net income while respecting our commitment not to expand our game offerings represents a formidable challenge."

The accompanying segmented results confirm that Loto-Québec is indeed now operating within a market that has reached maturity. In actual fact, all corporate sectors posted a decline in their revenues, with the exception of Video Lotteries. Mr. Cousineau expressed particular concern about the Casino de Montréal, which for the first time in a decade, saw a decline in its visitor traffic (-2.5%), its revenues (-3.9%), and in its net income (-6.9%).

A Year Brimming with Initiatives and Accomplishments

Among the highlights of the past fiscal year were the launch of numerous new lottery products, the Casino de Montréal's 10th anniversary celebrations, the decision to transform the three casinos into non-smoking establishments, the renewal of the Corporation's video lottery terminals (VLTs), and the implementation of a voluntary VLT withdrawal program among licensed establishments. In addition, Loto-Québec's Ingenio subsidiary added three new multimedia games to its portfolio, while the Société des bingos du Québec contributed $10.3 million to non-profit organizations holding bingo permits.

Sustained Social Commitment

In its annual review, Loto-Québec indicated that a total of $103.2 million was allocated to activities and initiatives to fulfill its social responsibilities. Included in this amount is $36.5 million in support of community action, $10.8 million for event sponsorships, and $55.5 million to help finance various Government programs. For example, the Corporation contributed $3 million to the Ministère de la Sécurité publique and $17 million to the Ministère de la Santé et des Services sociaux for the prevention and combating of compulsive gambling.

Strategic Planning Initiative

Loto-Québec's past fiscal year saw the implementation of a rigorous strategic planning initiative that enabled each organizational unit to clarify its mission, identify specific issues to be confronted, evaluate strengths and weaknesses, define objectives and decide upon an action plan.

As a result, the Corporation's different sectors are now better equipped to meet the challenges of a mature market by optimizing their business processes, reducing their operating costs, and thereby, contributing to improving the profitability of the organization's business activities.

This strategic planning initiative was based on the following four fundamental objectives:

- minimize the social costs associated with games of chance and adopt new measures to combat compulsive gambling

- improve the effectiveness and general performance of the organization so as to maintain the level of net income remitted annually to the Government

- contribute to the development and success of the tourism industry working hand-in-hand with key players in the sector

- refrain from increasing overall game offerings

Three-Year Development Plan

Another major highlight of the past fiscal year was the preparation of the 2004-2007 Development Plan submitted to the Government. Designed with the objective of assuring a better balance between the Corporation's business mission and its social responsibilities, the three-year plan proposes three fundamental strategic initiatives:

- diminishing accessibility to video lottery terminals by implementing a 31% reduction in the number of sites offering these units over a period of three years and concentrating the majority of VLTs thus recuperated at five gaming centres to be controlled by Loto-Québec

- creating an organization independent of Loto-Québec and the Government to be responsible for all mandates related to compulsive gambling research, awareness, prevention and treatment

- implementing a long-term solution to the Casino de Montréal's problems after careful assessment of the respective merits of two principal hypotheses - the expansion of the existing facility on Ile Notre-Dame, or the establishment of a new gaming house at the heart of an integrated recreational-tourist complex to be located at the Peel Basin

While waiting for the Government to follow up on the proposals contained in the Development Plan, Loto-Québec management is confronting the challenges of the current fiscal year with enthusiasm and optimism. In fact, the year has gotten off to a very positive start with a promising new business initiative - the launch of the new Lotto 6/49.

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	Loto-Québec Results Match Last Years 17 Jun 2004 <a href='https://ad.casinocity.com/adclick.php?n=a21efcd1'><img src='https://ad.casinocity.com/adview.php?what=-site:vendors/width:250/RON&n=a21efcd1' border='0' alt='' /></a> MONTREAL, Quebec – (PRESS RELEASE) -- For the fiscal year ended March 31, 2004, Loto-Québec posted consolidated revenues of $3.761 billion, up 0.3% from the previous year, and net income of $1.465 billion, representing an increase of 1.3% compared to fiscal 2002-2003. For their part, operating expenses were down by 1.2%. These results are outlined in Loto-Québec's 2004 Annual Report entitled, Committed to Maintaining a Healthy Balance, and tabled by Québec Finance Minister, Mr. Yves Séguin, at the National Assembly today. The document also indicates that the Corporation contributed a total of $1.493 billion in dividends to the Government during the past fiscal year, an increase of $182 million over the previous year. A portion of this increase originates from a levy of $100 million on shareholder's equity. A Market That Has Reached Maturity "We are pleased to have ended the past fiscal year with our consolidated results up," underlined Mr. Alain Cousineau, President and Chief Executive Officer of Loto-Québec. "All indications, however, point to the fact that we have now entered into an era of more moderate growth. Within this context, maintaining the level of our net income while respecting our commitment not to expand our game offerings represents a formidable challenge." The accompanying segmented results confirm that Loto-Québec is indeed now operating within a market that has reached maturity. In actual fact, all corporate sectors posted a decline in their revenues, with the exception of Video Lotteries. Mr. Cousineau expressed particular concern about the Casino de Montréal, which for the first time in a decade, saw a decline in its visitor traffic (-2.5%), its revenues (-3.9%), and in its net income (-6.9%). A Year Brimming with Initiatives and Accomplishments Among the highlights of the past fiscal year were the launch of numerous new lottery products, the Casino de Montréal's 10th anniversary celebrations, the decision to transform the three casinos into non-smoking establishments, the renewal of the Corporation's video lottery terminals (VLTs), and the implementation of a voluntary VLT withdrawal program among licensed establishments. In addition, Loto-Québec's Ingenio subsidiary added three new multimedia games to its portfolio, while the Société des bingos du Québec contributed $10.3 million to non-profit organizations holding bingo permits. Sustained Social Commitment In its annual review, Loto-Québec indicated that a total of $103.2 million was allocated to activities and initiatives to fulfill its social responsibilities. Included in this amount is $36.5 million in support of community action, $10.8 million for event sponsorships, and $55.5 million to help finance various Government programs. For example, the Corporation contributed $3 million to the Ministère de la Sécurité publique and $17 million to the Ministère de la Santé et des Services sociaux for the prevention and combating of compulsive gambling. Strategic Planning Initiative Loto-Québec's past fiscal year saw the implementation of a rigorous strategic planning initiative that enabled each organizational unit to clarify its mission, identify specific issues to be confronted, evaluate strengths and weaknesses, define objectives and decide upon an action plan. As a result, the Corporation's different sectors are now better equipped to meet the challenges of a mature market by optimizing their business processes, reducing their operating costs, and thereby, contributing to improving the profitability of the organization's business activities. This strategic planning initiative was based on the following four fundamental objectives: - minimize the social costs associated with games of chance and adopt new measures to combat compulsive gambling - improve the effectiveness and general performance of the organization so as to maintain the level of net income remitted annually to the Government - contribute to the development and success of the tourism industry working hand-in-hand with key players in the sector - refrain from increasing overall game offerings Three-Year Development Plan Another major highlight of the past fiscal year was the preparation of the 2004-2007 Development Plan submitted to the Government. Designed with the objective of assuring a better balance between the Corporation's business mission and its social responsibilities, the three-year plan proposes three fundamental strategic initiatives: - diminishing accessibility to video lottery terminals by implementing a 31% reduction in the number of sites offering these units over a period of three years and concentrating the majority of VLTs thus recuperated at five gaming centres to be controlled by Loto-Québec - creating an organization independent of Loto-Québec and the Government to be responsible for all mandates related to compulsive gambling research, awareness, prevention and treatment - implementing a long-term solution to the Casino de Montréal's problems after careful assessment of the respective merits of two principal hypotheses - the expansion of the existing facility on Ile Notre-Dame, or the establishment of a new gaming house at the heart of an integrated recreational-tourist complex to be located at the Peel Basin While waiting for the Government to follow up on the proposals contained in the Development Plan, Loto-Québec management is confronting the challenges of the current fiscal year with enthusiasm and optimism. In fact, the year has gotten off to a very positive start with a promising new business initiative - the launch of the new Lotto 6/49.